Cazaly Resources Limited is pleased to provide an exploration update for the Mount Angelo North prospect located within the Halls Creek Copper project. The Halls Creek Copper project is subject to an agreement with 3D Resources Limited whereby Cazaly may earn up to a 75% interest in the project. Initial metallurgical test work has commenced on samples taken from ore zones including high grade copper, zinc and silver mineralisation. Sighter test work will include mineralogy and leach and flotation tests over a number of regimes. The test work is being managed by Independent Metallurgical Operations Pty Ltd using internal and external accredited laboratories.

Cazaly has also planned and sought approvals for the next phase of drilling at Mount Angelo North which comprises approximately 2,000m of RC drilling aimed at testing the extrapolated extensions of mineralisation in areas highlighted by Cazaly’s maiden drill program in 2012. Additionally, known IP anomalies located along strike from the massive sulphide mineralisation will be targeted by the programme. Further regional exploration is also being planned including geochemistry, geophysics and RC drilling. This work will begin to advance other prospects in the Halls Creek Copper Project including the significant Mount Angelo Porphyry located 2.5km to the south west of Mount Angelo North. The copper porphyry was last drilled in 2008 returning drill intercepts of up to 117m @ 0.32% Cu and 150m @ 0.30% Cu (CAZ: “Halls Creek Copper Project Joint Venture” ).

The drilling will commence as soon as approvals are awarded and the weather conditions permit. Cazaly has also finalised the purchase of the 1.5% Net Smelter Royalty (“NSR”) which covers M80/247, and includes the Mount Angelo North copper deposit, from Sulphide Resources Pty. Ltd for 600,000 fully paid ordinary shares in CazalyJoint Managing Director Nathan McMahon said “The finalisation of the purchase of the NSR is another step towards adding value to the Mount Angelo Project for Cazaly shareholders.” On 20 December 2012, Cazaly announced results from its maiden RC drilling programme at Mount Angelo North which confirmed the strength of mineralisation over a strike length of 250m.

Possible extensions to the deposit have also been highlighted from recent work. Results previously released by Cazaly included:
- 64m @ 2.72% copper and 1.13% zinc from 14m (HCRC0015)
- 62m @ 2.41% copper and 2.75% zinc from 24m (HCRC0005)
- 38m @ 2.65% copper and 3.62% zinc from 28m, including 13m @ 6.74% zinc and
- 10m @ 6.00% copper and 31.65g/t silver (HCRC0006)

The Company looks forward to recommencing its exploration programmes over the Halls Creek project in 2013.